PwC HRI releases annual report

The PwC Health Research Institute (HRI) recently released its annual report, “Medical Cost Trend: Behind the Numbers 2017."

The report focuses on how pharmacy benefit managers (PBMs) can cut costs.

“With increased appetite from employers to narrow their formularies to one treatment option, PBMs are using competition between products to more aggressively negotiate drug costs,” the report reads. “This is putting a downward pressure on the growth rate of total health care spending. Reflecting the demand for value, the future of PBM contracting points toward paying for results and cures, not fee-for-service, around drug costs.”

Mark Merritt, Pharmaceutical Care Management Association President and CEO, released a statement about the report.

“This report underscores how PBMs are driving competition and in turn reducing costs for consumers, employers, government programs, and unions,” he said. “Policymakers should embrace greater use of proven PBM tools and reject drugmaker and drugstore lobby mandates that would increase prescription drug costs.”

The projections currently have PBMs saving their employers, unions, government programs and consumers $654 billion on the cost of drug benefits over the next 10 years. That is approximately 30 percent in savings.